- Musk’s xAI is positioning Grok to compete with OpenAI‘s ChatGPT and Google’s Gemini
- SoftBank is reportedly in talks with Gulf investors for a new $100 billion AI fund
- The Japanese investor’s costly AI bets come amid high-yield borrowing and questions about its financing strategy
- Musk called SoftBank’s fundraising efforts foolish, saying “Only a fool would give them money”
Elon Musk has publicly criticized SoftBank after the Japanese investment giant reportedly sought to raise $100 billion from Gulf investors for a new Artificial Intelligence fund. Musk wrote on X, “Only a fool would give them money.”
His AI ambitions have repeatedly put him at odds with OpenAI CEO Sam Altman, whom he has sued over the company’s shift from nonprofit to for-profit. Musk co-founded OpenAI in 2015 but left its board in 2018.
SoftBank, meanwhile, is looking to expand its AI exposure through a massive new fund. According to the Financial Times, Son has held discussions with senior figures in the UAE and other Gulf investors about raising as much as $100 billion.
The proposed fund would acquire companies and improve their operations using AI and other advanced technologies. SoftBank‘s robotics and physical AI business, Roze, is expected to play a key role in this strategy.
The fundraising effort would add to SoftBank‘s major commitment to OpenAI, where it has committed billions of dollars. However, the same exposure has raised questions about its financing strategy.
SoftBank raised more than $11 billion through a high-yield bond sale last month, with yields reaching 9.75%. This highlights the considerable cost of financing its ambitious AI bets.
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